MIRA INFORM REPORT

Report Date :

17.05.2012

IDENTIFICATION DETAILS

Name :	SUDEEP PHARMA LIMITED
Registered Office :	129/ 1/A, G.I.D.C. Estate, Nandesari, Baroda – 391340, Gujarat
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	21.12.1989
Com. Reg. No.:	04-013141
Capital Investment / Paid-up Capital :	Rs. 12.681 millions
CIN No.: [Company Identification No.]	U24231GJ1989PLC013141
TAN No.: [Tax Deduction & Collection Account No.]	BRDS02074C
PAN No.: [Permanent Account No.]	AACCS9716J
Legal Form :	A Closely Held Public Limited Liability Company.
Line of Business :	Manufacturer and Exporter of Pharmaceutical, Food and Feed Ingredients.
No. of Employees :	150 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

Ba (46)

RATING		STATUS	PROPOSED CREDIT LINE
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory

Maximum Credit Limit :	USD 200000
Status :	Satisfactory
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is an established company having satisfactory track. Trade relations are reported as fair. Business is active. Payments are reported to be usually correct and as per commitments. The company can be considered normal for business dealings at usual trade terms and conditions.

NOTES:

Any query related to this report can be made on e-mail: infodept@mirainform.com while quoting report number, name and date.

INFORMATION PARTED BY

Name :	Mrs. Bhatt
Designation :	Account Manager
Contact No.:	91-22-25185766
Date :	16.05.2012

LOCATIONS

Registered Office / Factory:	129/ 1/A, G.I.D.C. Estate, Nandesari, Baroda – 391340, Gujarat, India
Tel. No.:	91-265-2840656 / 3291354
Fax No.:	91-265-2841250 / 2336284
E-Mail :	mail@sudeepgroup.com
Website :	http://www.sudeepgroup.com
Area :	10000 sq. ft.
Location :	Owned
Branch Office :	D/307 Kailash Complex, Vikhroli Park Site, Vikhroli (West), Mumbai, Maharashtra, India
Tel. No.:	91-22-25185766 / 67254281
Fax No. :	91-22-25185766
E-Mail :	sudeepbo@vsnl.com
Area :	600 Sq. Ft.
Location :	Owned

DIRECTORS

As on 31.03.2011

Name :	Mr. Jaysukh .J. Bhayani
Designation :	Managing Director
Address :	66, Kunj Society, Alkapuri, Vadodara – 390 005, Gujarat, India
Date of Birth/Age :	23.07.1941
Date of Appointment :	21.10.1992
DIN No.:	01551347
Name :	Mr. Sujit .J. Bhayani
Designation :	Whole Time Director
Address :	66, Kunj Society, Alkapuri, Vadodara – 390 005, Gujarat, India
Date of Birth/Age :	28.06.1967
Date of Appointment :	01.03.1995
DIN No.:	01767427
Name :	Mr. Rajendra .C. Patel
Designation :	Director
Address :	303 Ramkrishna Flats Alkapuri, Vadodara - 390005, Gujarat, India
Date of Birth/Age :	12.09.1945
Date of Appointment :	01.02.2009
DIN No.:	02541744
Name :	Mr. Vishal Rakesh Agrawal
Designation :	Director
Address :	61, Alkapur Society, Alkapuri, Vadodar - 390005, Gujara, India
Date of Birth/Age :	01.10.1974
Date of Appointment :	01.04.2011
DIN No.:	00056800

KEY EXECUTIVES

Name :	Mrs. Bhatt
Designation :	Account Manager

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 27.09.2010

Names of Shareholders	No. of Shares
Jaysukh J. Bhayani	147780
Sujit Bhayani	147600
J. J. Bhayani – H.U.F.	112500
Avani S. Bhayani	180000
Sujit Bhayani H.U.F.	231250
Anjana R. Patel Shanil S Bhayani	84000
Sujit J. Bhayani Avani S. Bhayani	286250
Avani S. Bhayani Sujit J. Bhayani	54720
Rajendra C. Patel Shanil S. Bhayani	20000
Shanil S. Bhayani Sujit J. Bhayani	2000
Rhea S. Bhayani Sujit J. Bhayani	2000
Total	1268100

AS ON 27.09.2010

Equity Share Breakup	Percentage of Holding
Category	Percentage
Directors or relatives of directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer and Exporter of Pharmaceutical, Food and Feed Ingredients.

Products :

Item Code No. (ITC Code)	Product Description
2835	Dicalcium Phosphate/ TCP/ MM Etc. Pharma Intermediates

• Di Basic Calcium Phosphate Dihydrate (Milled)
• Di Basic Calcium Phosphate Dihydrate (Directly Compressible)
• Di Basic Calcium Phosphate Anhydrous (Milled)
• Di Basic Calcium Phosphate Anhydrous (Directly Compressible)
• Di Calcium Phosphate (Animal Feed Grade)
• Mineral/Vitamin Mixtures for Cattle/Poultry feeds
• Carbamazepine BP/USP
• Tri Calcium Phosphate

Exports :

Products :

Pharmaceutical, Food and feed Ingredients

Countries :

• USA
• UK
• Australia
• German
• Netherlands
• China
• Taiwan
• Italy
• Switzerland
• Canada

Terms :

Selling :

Cash and Credit

Purchasing :

Cash and Credit

PRODUCTION STATUS (As on 31.03.2011)

Particulars	Unit	Licensed Capacity	Installed Capacity
DCP /TCP /MM etc. (Pharma Products)	Kgs	NA	6000000

GENERAL INFORMATION

Customers :

Wholesalers and Retailers

No. of Employees :

150 (Approximately)

Bankers :

· Bank of Baroda, Nandesari Industrial Branch, Nandesari, District Baroda, Vadodara – 391340, Gujarat, India

· ICICI Bank, India

· HDFC Bank, India

Facilities :

Secured Loans	Rs. In Millions 31.03.2011	Rs. In Millions 31.03.2010
A] From Bank
Term Loan (Secured by equitable mortgage of Land and Building and hypo of Immovable Plant and Machinery)	9.764	5.663
Working Capital facilities
Cash Credit	27.038	13.373
Packing Credit (Secured against hypo of Inventories and Book debts)	5.871	10.100
Vehicle Loan (Secured against hypo of Car)	3.727	0.517
B] From ICICI and HDFC
Vehicles Loan (Secured against hypo of Car)	0.000	0.101
Total	46.400	30.654
Unsecured Loans	Rs. In Millions 31.03.2011	Rs. In Millions 31.03.2010
From Directors	0.153	0.165
From Shareholders	5.780	2.651
From Others	0.000	0.215
Total	5.933	3.031

Banking Relations :	--
Auditors :
Name :	Shah Mehta and Bakshi Chartered Accountants
Address :	2^nd Floor, Prasanna House, Associated Opposite Radhakrishna, Near Akota Stadium, Vadodara – 390 020, Gujarat, India
Tel No. :	91-265-2331060/ 2337727/ 2355435
Fax No. :	91-265-2654630/ 2343227
Pan No.:	AAUPM0018Q
Email :	itr@smb-ca.com office@smo-ou.com

CAPITAL STRUCTURE

As on 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
6000000	Equity Shares	Rs. 10/- each	Rs. 60.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
1268100	Equity Shares	Rs. 10/- each	Rs. 12.681 millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2011	31.03.2010	31.03.2009
SHAREHOLDERS FUNDS
1] Share Capital		12.681	12.681	12.681
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		61.543	36.162	32.560
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		74.224	48.843	45.241
LOAN FUNDS
1] Secured Loans		46.400	30.654	35.427
2] Unsecured Loans		5.933	3.031	1.348
TOTAL BORROWING		52.333	33.685	36.775
DEFERRED TAX LIABILITIES		3.624	3.227	3.033
TOTAL		130.181	85.755	85.049
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		69.375	61.835	51.364
Capital work-in-progress		7.039	0.024	0.000
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	27.433	14.203	16.400
	Sundry Debtors	46.782	32.214	31.575
	Cash & Bank Balances	1.358	0.110	0.057
	Other Current Assets	18.611	8.181	10.438
	Loans & Advances	0.000	0.000	0.000
Total Current Assets		94.184	54.708	58.470
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditor	21.862	15.960	17.063
	Other Current Liabilities	1.919	2.298	2.008
	Provisions	16.984	13.251	6.759
Total Current Liabilities		40.765	31.509	25.830
Net Current Assets		53.419	23.199	32.640
MISCELLANEOUS EXPENSES		0.348	0.697	1.045
TOTAL		130.181	85.755	85.049

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income	293.417	223.560	237.459
		Other Income	1.552	0.812	0.049
		TOTAL (A)	294.969	224.372	237.508
Less	EXPENSES
		Increase/ (Decrease) in Stock	(12.490)	6.418
		Manufacturing Expenses	207.794	140.923	198.860
		Admin and Selling Expenses	37.234	29.149
		TOTAL (B)	232.538	176.490	198.860
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		62.431	47.882	38.648
Less	FINANCIAL EXPENSES (D)		5.684	3.424	4.057
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		56.747	44.458	34.591
Less/ Add	DEPRECIATION/ AMORTISATION (F)		5.259	4.633	3.852
	PROFIT BEFORE TAX (E-F) (G)		51.488	39.825	30.739
Less	TAX (H)		18.517	14.339	11.744
	PROFIT AFTER TAX (G-H) (I)		32.971	25.486	18.995
Less	Prior Period Adjustment		0.220	0.035	0.058
Add	Depreciation Earlier years w/back		0.000	0.405	0.556
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		30.613	29.597	10.104
Less	APPROPRIATIONS
		Transfer to General Reserve	3.275	2.586	0.000
		Dividend	6.340	19.022	0.000
		Tax on Dividend	1.029	3.233	0.000
	BALANCE CARRIED TO THE B/S		52.720	30.613	29.597
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	139.240	124.901	140.104
	TOTAL EARNINGS		139.240	124.901	140.104
	IMPORTS
		Raw Materials	92.047	41.858	26.480
	TOTAL IMPORTS		92.047	41.858	26.480
	Earnings Per Share (Rs.)		26.00	20.10	14.98

Particulars	31.03.2012
Sales Turnover (Approximately)	330.000

Expected Sales (2012-2013) : Rs. 370.000 Millions

The above information has been parted by Mrs. Bhatt.

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	11.18	11.36	7.99
Net Profit Margin (PBT/Sales)	(%)	17.55	17.81	12.94
Return on Total Assets (PBT/Total Assets}	(%)	31.48	34.17	27.99
Return on Investment (ROI) (PBT/Networth)		0.69	0.82	0.68
Debt Equity Ratio (Total Liability/Networth)		1.30	1.33	1.38
Current Ratio (Current Asset/Current Liability)		2.31	1.74	2.26

LOCAL AGENCY FURTHER INFORMATION

SUNDRY CREDITORS DETAILS:

Particulars	Rs. In Millions 31.03.2011	Rs. In Millions 31.03.2010	Rs. In Millions 31.03.2009
Creditors – Raw Materials	11.444	6.382	9.282
Creditors – Others	10.418	9.578	7.781
Total	21.862	15.960	17.063

Check list by info Agents	Available in Report (Yes/ No)
Year of Establishment	Yes
Locality of the Firm	Yes
Constitution of the Firm	Yes
Premises details	Yes
Type of Business	Yes
Line of Business	Yes
Promoter’s Background	Yes
No. of Employees	Yes
Name of Person Contacted	Yes
Designation of Contact person	Yes
Turnover of Firm for last three years	Yes
Profitability for last three years	Yes
Reasons for variation <> 20%	-------------
Estimation for coming financial year	Yes
Capital in the business	Yes
Details of sister concerns	No
Major Suppliers	No
Major Customers	No
Payments Terms	Yes
Export/ Imports Details (If applicable)	Yes
Market Information	-------------
Litigations that the firm/ Promoters Involved in	--------------
Banking details	Yes
Banking Facility Details	Yes
Conduct of the Banking Account	-----------
Buyer visit details	-----------
Financials, if provided	Yes
Incorporation details is applicable	Yes
Last Accounts filed at ROC	Yes
Major Shareholders, if available	Yes

Note:

The registered office of the company has been shifted from 66, Kunj Society, Alkapuri, Vadodara – 390 005, Gujarat, India to the present address w.e.f. 14.03.2009.

Bank Charges:

Corporate identity number of the company	U24231GJ1989PLC013141
Name of the company	SUDEEP PHARMA LIMITED
Address of the registered office or of the principal place of business in India of the company	129/ 1/ A, G.I.D.C. Estate, Nandesari, Baroda – 391340, Gujarat, India
This form is for	Modification of charge
	90103900
Type of charge	Immovable Property
Particular of charge holder	Bank of Baroda, Nandesari Branch, GIDC Estate Nandesari, Baroda – 391340, Gujarat, India E-Mail: indnan@bankofbaroda.com
Nature of instrument creating charge	Instrument of Extension / Creation of Mortgage Relating to Constructive / Actual Deposit of Title Deeds
Date of instrument Creating the charge	27.09.2011
Amount secured by the charge	Rs. 99.571 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of Interest As Per Agreement Terms of Repayment As Per Agreement Margin As Per Agreement Extent and Operation of the charge As Per Agreement
Short particulars of the property charged	Leasing Immovable Property Being Plot No. 129/1/A Admeasuring 3024 Sq. Mtrs or thereabout in Nandesari Industrial Estate, Situated on Land Bearing Revenue Survey No. 528,525 and 520 Within The Village Limits of Nandesari, Registration Sub District and District Baroda and Bounded on or towards Leasehold Immovable Property Being Plot/Shed no C-1/B/129/12 In Nandesari Industrial Area Situate on Land Bearing Revenue Survey No 530/Part, Admeasuring 608 Sq Mtrs Within The Village Limits of Nandesari, Registration Sub District and District Baroda and Bounded on or towards Leasehold Immovable Property Being Plot/Shed no C-1/B/129/13 In Nandesari Industrial Area Situate on Land Bearing Revenue Survey No 530/Part, Admeasuring 608 Sq Mtrs Within The Village Limits of Nandesari, Registration Sub District and District Baroda and Bounded on or towards Leasehold Immovable Property Being Plot/Shed no C-1/B/129/14 In Nandesari Industrial Area Situate on Land Bearing Revenue Survey No 514/P, 515/P Admeasuring 749.88 Sq Mtrs Within The Village Limits of Nandesari, Registration Sub District and District Baroda and Bounded on or towards Leasehold Immovable Property Being Plot Known As 129/15 and 126/2 In Nandesari Industrial Area of GIDC Situate on Land Bearing Revenue Survey No 514/P And 530/P Within The Village Limits of Nandesari Registration Sub District and District Baroda and Bounded on or towards
Date of latest modification prior to the present modification	07.07.2011
Particulars of the present modification	By this document the charge stands extended to Rs. 99.571 Millions from Rs. 81.417 Millions.

FIXED ASSETS:

• Land Leasehold
• Office
• Factory Shed
• Plant and Machinery
• Pipes, Valves and Structures
• Electrification
• Laboratory Equipments
• Computer
• Vehicles
• Office Equipments
• Misc fixed assets
• Furniture and Fixtures

AS PER WEB DETAILS

PROFILE

Subject established in 1989 for the production of Pharmaceutical, Food and Feed ingredients. Their major products are various kinds of Calcium Phosphates, with annual capacities 10,000 MT. They are the largest manufacturer and exporter catering to the requirements of over 600 content customers around the globe. Their regular exports are to USA, UK, Canada, Australia, Netherlands, Germany, Portugal, Switzerland, Italy, Indonesia, Taiwan, Thailand and South Africa.

All products are manufactured under standards of good manufacturing practice (GMP) & comply with various international official compendia such as The United States Pharmacopeia / National Formulary (USP/NF), The European Pharmacopeia (EP) & the British Pharmacopeia (BP)

Quality is one of the most important aspects in our corporate philosophy. We have a strict procedure in place to ensure consistent production and quality. It all begins with raw material testing, procured from approved suppliers leading to the stages of production and ends with timely dispatches.

Their highly trained and motivated employees are an integral link of the production chain. Their professionalism and high standards in all departments has resulted in a world wide acceptance of our products.

CMT REPORT (Corruption, Money Laundering & Terrorism]

The Public Notice information has been collected from various sources including but not limited to: The Courts, India Prisons Service, Interpol, etc.

1] INFORMATION ON DESIGNATED PARTY

No records exist designating subject or any of its beneficial owners, controlling shareholders or senior officers as terrorist or terrorist organization or whom notice had been received that all financial transactions involving their assets have been blocked or convicted, found guilty or against whom a judgement or order had been entered in a proceedings for violating money-laundering, anti-corruption or bribery or international economic or anti-terrorism sanction laws or whose assets were seized, blocked, frozen or ordered forfeited for violation of money laundering or international anti-terrorism laws.

2] Court Declaration :

No records exist to suggest that subject is or was the subject of any formal or informal allegations, prosecutions or other official proceeding for making any prohibited payments or other improper payments to government officials for engaging in prohibited transactions or with designated parties.

3] Asset Declaration :

No records exist to suggest that the property or assets of the subject are derived from criminal conduct or a prohibited transaction.

4] Record on Financial Crime :

Charges or conviction registered against subject: None

5] Records on Violation of Anti-Corruption Laws :

Charges or investigation registered against subject: None

6] Records on Int’l Anti-Money Laundering Laws/Standards :

Charges or investigation registered against subject: None

7] Criminal Records

No available information exist that suggest that subject or any of its principals have been formally charged or convicted by a competent governmental authority for any financial crime or under any formal investigation by a competent government authority for any violation of anti-corruption laws or international anti-money laundering laws or standard.

8] Affiliation with Government :

No record exists to suggest that any director or indirect owners, controlling shareholders, director, officer or employee of the company is a government official or a family member or close business associate of a Government official.

9] Compensation Package :

Our market survey revealed that the amount of compensation sought by the subject is fair and reasonable and comparable to compensation paid to others for similar services.

10] Press Report :

No press reports / filings exists on the subject.

CORPORATE GOVERNANCE

MIRA INFORM as part of its Due Diligence do provide comments on Corporate Governance to identify management and governance. These factors often have been predictive and in some cases have created vulnerabilities to credit deterioration.

Our Governance Assessment focuses principally on the interactions between a company’s management, its Board of Directors, Shareholders and other financial stakeholders.

CONTRAVENTION

Subject is not known to have contravened any existing local laws, regulations or policies that prohibit, restrict or otherwise affect the terms and conditions that could be included in the agreement with the subject.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs. 54.29
UK Pound	1	Rs. 86.60
Euro	1	Rs. 68.87

INFORMATION DETAILS

Information Gathered by :	SVA
Report Prepared by :	ACH

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	5
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILIRY	1~10	5
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	5
--CREDIT LINES	1~10	5
--MARGINS	-5~5	----
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	NO
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	NO
--AFFILIATION	YES/NO	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		46

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

Financial condition (40%) Ownership background (20%) Payment record (10%)

Credit history (10%) Market trend (10%) Operational size (10%)

RATING EXPLANATIONS

RATING		STATUS	PROPOSED CREDIT LINE
>86	Aaa	Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums	Unlimited
71-85	Aa	Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums	Large
56-70	A	Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums	Fairly Large
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small
11-25	Ca	Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity	Limited with full security
<10	C	Absolute credit risk exists. Caution needed to be exercised	Credit not recommended
-	NB	New Business	-

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.